Egypt will replace gas power stations with renewables and consider setting a net zero emissions target after the US and Germany stumped up vast sums of dollars in support.
In a joint declaration using the US and Germany, Cop27 host Egypt said hello will bring forward its renewables target, update its climate plan, “explore” a net zero goal and shut down a tenth of its gas power capacity.
To support this, the US and Germany promised to “mobilise” EUR100m in debt forgiveness, EUR100m in loans which they said were on good terms and EUR85m in grants, which don’t need to be paid back.
The US claimed this would “unlock” $10 billion in private sector investment, underneath the leadership from the European Bank for Reconstruction and Development.
After announcing their bond at Cop27, US president Joe Biden said: “If we’re going to win this fight, every major emitter and nation needs to align with 1.5C.”
In a statement, the US government said that decrease in gas use would “enhance energy security by freeing up over two billion cubic meters of gas”.
Egypt can export that gas to Europe, that has been scrambling for supplies to exchange Russian imports because the latter invaded Ukraine.
Under UN rules, CO2 emissions are counted where the gas is burned rather than where it is produced. Egyptian gas used in Europe will count towards Europe’s emissions. Any methane leaked in the extraction process will go in Egypt’s inventory.
“Exploring” net zero
Egypt committed to update its climate plan by June 2023. It will include a 2050 long term strategy and “explore” an internet zero target.
Egypt brings forward its goal to get 42% of their installed electricity capacity from renewables from 2035 to 2030.
It is set to retire 12 “inefficient” gas-fired power plants having a capacity of 5GW. According to Global Energy Monitor, Egypt has 36 gas power plants having a capacity of 51GW.
Germany’s development minister Svenja Schulze said: “With this announcement, Egypt as host sends a strong signal for more ambition in mitigation to Cop27.”
She added: “I especially welcome that Egypt's new climate policies will also address the social dimension of transitioning to green economies. Without social justice there will be no successful answer to global warming.”
Some of the debt swap proceeds goes to produce new jobs for individuals affected by the gas plant closures, the German development ministry (BMZ) said.
The programme is known as Nexus water, Food and (NWFE). In Arabic, this acronym means “fulfilling pledges”.
The water and food components weren't immediately clear from the statement. They're prone to relate to making Egypt’s food and water supply more resilient to drought driven by climate change.
Both the US and Germany had raised concerns with the Egyptian government over the imprisonment of political activist Alaa Abd el-Fattah. German climate envoy Jennifer Morgan spoke on a panel in the German pavilion together with his sister. El-Fattah remains imprisonment on the water strike and relatives report the authorities are keeping him alive with “medical intervention”.
